Li Auto Sees Delayed Vehicle Deliveries Amid Stress to Supply Chain

Chinese electric vehicle maker Li Auto posted a statement to its official app on Wednesday, saying that the delivery of some vehicles would be delayed because supply chain enterprises located in Jiangsu, Zhejiang and Shanghai could not ship products normally due to the ripple effects of ongoing pandemic prevention measures.

In addition, the EV firm said that it is working with affected supply chain enterprises to actively restore production capacity under the public health requirements, so as to limit the delivery delay period to within three weeks.

In March, 11,034 units of the firm’s Li ONE model were delivered, a year-on-year increase of 125.2%. In the first quarter of 2022, Li Auto delivered 31,716 vehicles in total, up 152.1% year-on-year.

At present, the suspended production of auto parts enterprises is having a major impact on the automobile industry. There are many such firms gathered in the eastern Chinese provinces of Jiangsu and Zhejiang, as well as in nearby Shanghai, where confirmed Covid cases have surged lately. According to Qichacha, there are about 24,000 Chinese enterprises with registered capital above 50 million yuan ($7.8 million) focused on making auto parts and related business, of which 7,351 are in the above mentioned three areas, accounting for 30.6%.

FAW Group, Tesla, Great Wall Motors and NIO Inc. all have temporarily suspended production at some point during recent outbreaks. At present, many car companies are gradually resuming work. A few days after announcing the suspension of vehicle production at its plant in Hefei, NIO said on April 14 that it is preparing to gradually resume production. As for future production plans, it depends on how the supply chain recovers.

In addition, as of April 17, FAW’s five main engine plants in Changchun have all resumed production, with a total of 7,438 people returning to normal work. Tesla’s Shanghai Gigafactory also resumed work on Tuesday after stopping production for about three weeks, and it is expected to resume full production capacity in a single shift within three or four days.

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